Technical Analysis – Intel stock turns cautiously positive in short-term

Marios Hadjikyriacos, XM Investment Research Desk

Intel’s stock has been grinding higher in recent weeks and is now trading back above its 200-day simple moving average (SMA). Combined with the fact that price action since late October consists of higher lows, the short-term picture seems to have shifted to cautiously positive, from neutral previously.

The notion is supported by short-term momentum oscillators as well, with the RSI being in positive territory and pointing up, and the MACD rising above its red trigger line.

If the bulls stay in control, immediate resistance to advances may be found at 51.00, which halted the rally on February 14. An upside break would open the door for a test of the July highs at 53.25, with even steeper bullish extensions aiming for 54.20, an area defined by the June 11 lows.

On the other hand, a correction lower could stall initially around the 200-day SMA at 49.15. A clear break below that would turn the bias to a more neutral one and may allow the bears to challenge the crossroads of 48.00 and the 50-day SMA at 47.78.

In brief, the picture seems cautiously positive at the moment, though a sustained move back below the 200-day SMA would bring that into doubt.